The Union United Auto Workers begin simultaneous strikes in three factories owned by General Motors, Ford and Stellantis Owner of Chrysler, start the Industrial action Most ambitious of USA for decades in the automotive sector, one of the most important in its economy and by weight in the world.
The strikes in the three factories Detroit They will stop production of the Ford Bronco, Jeep Wrangler and Chevrolet Colorado pickup, as well as other popular models.
“For the first time in our history we will strike in the Big Three” said the UAW president, Shawn Fain, adding that the union will avoid more costly company-wide strikes for now, but that all options are open if new contracts are not agreed. Fain presented his plans for the walkouts on Facebook Live, less than two hours before the old contract expired.
Come on days End of weeks Clashes between Fain and the directors of the Detroit Three regarding the Union demands a larger one Mission in the profits generated through combustion trucks and a more job security as car manufacturers shift to electric vehicles.
The confrontation has become one political problem, and President Joe Biden, who faces an election next year, called for a deal.
Historic strike: More than 12,000 employees go on strike
read strikes A total of 12,700 workers are affected, taking place in the assembly plants of Ford in Wayne, Michigan, GM in Wentzville, Missouri and the Stellantis Jeep brand in Toledo, Ohio.. These plants are essential for the production of some of them vehicles most profitable automobile manufacturer.
Fain’s decision to opt for selective work stoppages could limit the cost of the strike to the union. The UAW has an $825 million strike fund, which is minuscule compared to the billions in liquidity that automakers have accumulated thanks to strike funds Solids Advantages of trucks and SUVs manufactured by UAW members.
But a a one-week closure of your factory of Jeep in Toledo could more than reduce income 380 million dollars, according to information from Stellantis’ financial reports.
“This is more of a symbolic strike than a truly disruptive one,” said Sam Fiorani, manufacturing analyst at Auto Forecast Solutions, adding that he expected more from the first wave of strikes. “If the negotiations do not go in a direction that Fain considers positive, we can expect one Major strike in a week or two” he said. Fiorani estimated that the strike would bring production of some parts to a halt 24,000 vehicles one week. And while it targets some key brands, buyers would be willing to wait for now.
Historic strike: The position of the companies and the demand of the union
The union wants one Increase by 40%. read Companies They have offered up to 20%, but without that social benefits demanded by the union. None of the three Detroit companies have proposed abolition graduated salary systems that requires newly hired workers to stay on the job for eight years to earn the same wages as veterans, a key demand of the UAW.
Ford said the UAW’s latest proposals would double its costs labour costs in the United States and they would do it Lose competitiveness against Tesla and other non-union competitors. A strike could mean the UAW’s profit-sharing checks for this year would be “decimated,” he said.
Stellantis said it contacted us immediately “Emergency mode” and that it would make all appropriate structural decisions protect the company and its operations in North America, without providing further details.
Fain said earlier this week that Stellantis had proposed closing by 18 facilities in the United States.
GM It was found disappointed due to unemployment and said he would move on. negotiate in good faith.”
Fain has rejected automakers’ claims that this is the case Union demands would cost too much to say that companies spent billions on it Share buybacks j Executive salaries.
Suppliers and other industries that rely on automakers and their workers could see a drop in demand and liquidity if the UAW closes the Detroit Three factories in the US.
Historic strike: the government’s position
Biden is investing billions in federal grants Increase sales figures from electric vehicles. But switching to electric vehicles could be dangerous Job offers the UAW in the area of internal combustion engines.
Although a deal with one or more of the automakers could come about at any time, the interruption It’s an opportunity for Car manufacturer Non-union in the United States, including Tesla, Toyota, Honda and Mercedes.
These represent non-union factories as well as imported vehicles more than half of the vehicles sold on the US market.
Deutsche Bank estimates that a total strike would roughly impact every automaker’s profits 400 to 500 million dollars per week production Loss. Some of these losses could be offset by a later increase in production plans, but this possibility disappears if the strike drags on for weeks or months.
